MIRA
INFORM REPORT
|
Report Date : |
5th
January, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
ZHEJIANG MEDICINES & HEALTH
PRODUCTS IMPORT & EXPORT Co., Ltd. |
|
|
|
|
Registered Office : |
No. 101-2, North Zhongshan Road, Hangzhou, Zhejiang Province, 310003 Pr China |
|
|
|
|
Financials (as on): |
31.12.2005 |
|
|
|
|
Country : |
China |
|
|
|
|
Date of Incorporation : |
29.06.1999 |
|
|
|
|
Com. Reg. No.: |
3300001005837 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged
in importing and exporting various kinds of medical machinery |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Usually
Correct |
|
|
|
|
Litigation : |
Clear |
Name & address
ZHEJIANG MEDICINES & HEALTH PRODUCTS
IMPORT & EXPORT Co., Ltd.
NO. 101-2, north zhongshan road,
hangzhou,
zhejiang province, 310003 PR CHINA
TEL: 86 (0) 571-87017661 / 87017663
FAX: 86 (0) 571-87016777 / 87915388
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 29, 1999
REGISTRATION NO. : 3300001005837
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. LI FUSHENG (CHAIRMAN)
STAFF STRENGTH : 200
REGISTERED CAPITAL : RMB 56,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 2,359,533,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 103,476,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 500,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.94=US$1 AS OF 2006-09-04
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (The official body of issuing and
renewing business license) on June 29, 1999.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. At least two shareholders
and no more than fifty contribute its registered capital jointly.
Shareholders bear limited liability to the extent of shareholding, and the
co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the
establishment of the co., an investment certificate is issued to the each
of shareholders. The board of
directors is comprised of three to thirteen members. The minimum
registered capital for a co. is listed as follows: -Manufacturing co. :
CNY 500,000.00 -Trading
&wholesaling co. : CNY 500,000.00 -Retailing co. : CNY 300,000.00 -Consultancy &
service co. : CNY 100,000.00 Shareholders may
take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology. Cash contributed by
all shareholders must account for at least 50% of the registered capital
while contribution by intangible assets must not exceed 20% of the registered
capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s
registered business scopes include operating medical
machinery, importing and exporting business (excluding the goods forbidden by
the government); selling Chinese traditional medicinal crops, Chinese patent
medicine, traditional Chinese medicines prepared in ready-to-use forms,
chemical raw materials, chemical agent, antibiotic, biochemicals, and acetic
anhydride, phenylacetic acid; selling dangerous
chemical products.
SC is
mainly engaged in importing and exporting various kinds of medical machinery.
Mr. Li Fusheng has been legal representative and chairman of SC since
May 2000.
SC owns approximately 200 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Hangzhou. Our checks reveal that SC owns the total premise about 5,000 square
meters.
http://www.zmcchina.com The design is professional and the content
is well organized. At present it is in English version.
Email: zmc@zmcchina.com
No significant events or changes were found during our checks with
the local Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name
%
of Shareholding
Shareholders
Union of the staff 45.44
Zhejiang Grand Glory(Holdings) Co. ,Ltd.
Li
Fusheng 1.44
Chen Zhangsheng 1.29
Li Lin 1.29
Wang Ping 1.29
Ma Zhengming 1.13
Dai Yunhua 1.13
Zhao Xiaogang 1.13
Ge Hongliang 1.13
Qiu Guohai 0.91
Yang Baohua 0.91
Other 30 individuals 12.91
Legal representative and General manager:
Mr. Li
Fusheng , ID# 330103500116073, 56 years old with high
school education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2000
to present Working in SC as chairman and general manager.
SC is
mainly engaged in importing and exporting various kinds of medical machinery.
SC
mainly engaged in the import and export of pharmaceuticals and their
preparations, pharmaceutical intermediates, bio-chemical medicines Chinese
herbs and patent drugs, bee products including fresh royal jelly, health
products, medical instruments.
SC’s
products mainly include: pharmaceuticals & intermediates, natural plant
extracts & food additives, medicines & preparations, etc.
SC sources its materials 70% from domestic market, and 30% from
USA and Europe. SC sells 50% of its products in domestic market, and 50% to Asian,
Europe, America, etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60
days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
SC is
not known to have any subsidiary at present.
Overall payment appraisal :
( )
Excellent ( ) Good
(X) Average ( ) Fair
( ) Poor (
) Not yet determined
The appraisal serves as a reference to reveal SC's
payments habits and ability to pay. It
is based on the 3 weighed factors:
Trade payment experience (through current enquiry with SC's suppliers),
our delinquent payment and our debt collection record concerning SC.
Trade payment experience : SC did
not provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent payment record : None in our database.
Debt collection record :No
overdue amount owed by SC was placed to us for collection within the last 6
years.
SC’s
management declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2004 |
as of Dec. 31,
2005 |
|
Cash
& bank |
13,698 |
81,354 |
|
Inventory |
145,248 |
89,097 |
|
Accounts
receivable |
173,684 |
166,765 |
|
Advances
to supplies |
14,026 |
34,590 |
|
Other
receivables |
73,716 |
29,452 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
420,372 |
401,258 |
|
Fixed
assets |
47,693 |
48,703 |
|
Fixed
assets net value |
32,798 |
30,326 |
|
Projects
under construction |
242 |
802 |
|
Long-term
investments |
4,049 |
6,528 |
|
Intangible
and other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
457,461 |
438,914 |
|
|
============= |
============= |
|
Short
loans |
86,435 |
40,850 |
|
Accounts
payable |
65,600 |
49,735 |
|
Notes payable |
99,250 |
190,950 |
|
Other
Accounts payable |
23,523 |
6,808 |
|
Taxes
payable |
-7,951 |
-2,440 |
|
Accrued
payroll |
6,379 |
10,309 |
|
Dividends
payable |
29,632 |
0 |
|
Welfares
payable |
6,181 |
5,975 |
|
Advances
from customers |
50,299 |
26,574 |
|
Accrued
expenses |
3,537 |
6,639 |
|
Other current liabilities |
4 |
9 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
362,889 |
335,409 |
|
Long
term liabilities |
64 |
29 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
362,953 |
335,438 |
|
Shareholders
equities |
94,508 |
103,476 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
457,461 |
438,914 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2004 |
as of Dec. 31,
2005 |
|
Turnover |
1,835,588 |
2,359,533 |
|
Cost
of goods sold |
1,743,298 |
2,239,786 |
|
Add: Income from other operations |
6,817 |
1,935 |
|
Sales expense |
27,954 |
38,569 |
|
Management expense |
27,008 |
30,398 |
|
Finance expense |
2,683 |
1,142 |
|
Subsidy
income |
5,866 |
3,795 |
|
Operation
Profit |
48,359 |
57,257 |
|
Less:
profit tax |
16,054 |
19,288 |
|
Net profit |
32,305 |
37,969 |
Important Ratios
|
|
as of Dec. 31, 2004 |
as of Dec. 31,
2005 |
|
*Current
ratio |
1.16 |
1.20 |
|
*Quick
ratio |
0.76 |
0.93 |
|
*Liabilities
to assets |
0.79 |
0.76 |
|
*Net
profit margin (%) |
1.76 |
1.61 |
|
*Return
on total assets (%) |
7.06 |
8.65 |
|
*Fixed
assets/Total assets |
0.07 |
0.07 |
|
*Inventory
/Turnover ×365 |
29days |
14days |
|
*Accounts
receivable/Turnover ×365 |
35days |
26days |
|
*Turnover/Total
assets |
4.01 |
5.38 |
|
* Cost
of goods sold/Turnover |
0.95 |
0.95 |
PROFITABILITY: AVERAGE
The
turnover of SC appears fairly good in its line.
SC’s net
profit margin is average.
SC’s
return on total assets is average.
SC’s
cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The
current ratio of SC is maintained in a normal level.
SC’s
quick ratio is maintained in a normal level.
The
inventory of SC is maintained in a normal level.
The accounts
receivable of SC appears LARGE.
SC’s
short-term loan is in an acceptable level.
SC’s
notes payable appears TOO LARGE.
SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt
ratio of SC is fairly high.
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Stable.
s
SC is
considered medium-sized in its line with favorable market conditions. Over the
past 7 years, SC has made a stable growth with acceptable profit. A credit line
up to USD 500,000 would appear to be within SC’s capacities upon a periodical
review basis.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|